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Disputes - international:
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unruly region at convergence of Argentina-Brazil-Paraguay borders is locus of money laundering, smuggling, arms and drug trafficking, and fundraising for extremist organizations; uncontested dispute with Uruguay over certain islands in the Quarai/Cuareim and Invernada boundary streams and the resulting tripoint with Argentina
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Illicit drugs:
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illicit producer of cannabis; minor coca cultivation in the Amazon region, used for domestic consumption; government has a large-scale eradication program to control cannabis; important transshipment country for Bolivian, Colombian and Peruvian cocaine headed for Europe and the US; also used by traffickers as a way station for narcotics air transshipments between Peru and Colombia; upsurge in drug-related violence and weapons smuggling; important market for Colombian, Bolivian, and Peruvian cocaine; illicit narcotics proceeds earned in Brazil are often laundered through the financial system; significant illicit financial activity in the Tri-Border Area
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